This credit is nonrefundable and doesn’t carry forward. If you make more than $100,000, you won’t be eligible for this credit. The credit is equal to 20% of the credit for childcare expenses allowed by the Internal Revenue Code (IRC) or 5% of the child tax credit allowed by the IRC, whichever is greater. If your federal adjusted gross income (AGI) is less than $100,000 and you’re allowed a credit for child care expenses or the child tax credit on your federal income tax return, you’ll be eligible for a credit against your Oklahoma tax. Oklahoma State Income Tax Credits Child Care / Child Tax Credit They may deduct contributions for the current tax year, as well as contributions for prior years that occurred after Dec. Those married filing jointly can deduct up to $20,000, while all other filing statuses can deduct up to $10,000. Oklahoma taxpayers may also deduct contributions to qualified 529 accounts. Contributions to Oklahoma 529 College Savings Plan and OklahomaDream 529 account(s) However, they must also provide a schedule detailing the expenses incurred and a description of the disability. Taxpayers who have a qualifying physical disability that constitutes a substantial handicap to employment may deduct the expenses incurred while modifying a motor vehicle, home, or workplace in a manner necessary to compensate for their disability. The expenses must be deducted in the year incurred. The expenses must be directly related to the adoption, such as adoption fees, attorney’s fees, and court costs. Taxpayers who have recently adopted a child may deduct certain non-recurring adoption expenses up to $20,000 per calendar year. In addition, Oklahoma allows for a number of state-specific deductions, including: Qualified adoption expense The only exceptions are charitable contributions and medical expenses, which aren’t subject to the $17,000 limit. On your state return, your total amount of deductions must be limited to $17,000. Those two deductions can’t be taken in Oklahoma and must be added back into your income. In Oklahoma, your itemized deductions are largely based on your federal deductions, except for any state and local sales tax or income tax deducted. If you itemized deductions on your federal tax return, you’re required to itemize deductions on your Oklahoma return.
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